"The bill threatens the federal government's longstanding authority to manage property and claim proprietary rights for the benefit of Indian tribes and reserved federal lands, and the broader public that depends on the proper management of public lands and resources," the OMB said in a statement of administration policy.

The bill was written to address concerns raised by the ski industry, which often leases public lands for commercial operations. The White House said the USDA will be proposing a new regulation to replace one that was struck down in court.

"The administration looks forward to working with Congress to address any remaining concerns regarding the ski area water rights proposal after its publication and to developing legislation that maintains the federal government's interest in protecting public lands and waters, allows for the continuance of voluntary agreements between the federal government and other water rights holders, and ensures adequate protection of the environment," the OMB said.